Charles River Laboratories International (NYSE:CRL) Releases Quarterly Earnings Results, Beats Estimates By $0.12 EPS

Charles River Laboratories International (NYSE:CRL) announced its quarterly earnings results on Wednesday. The medical research company reported $3.09 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.97 by $0.12, FiscalAI reports. Charles River Laboratories International had a negative net margin of 5.96% and a positive return on equity of 15.75%. The company had revenue of $982.73 million for the quarter, compared to analysts’ expectations of $960.36 million. During the same quarter in the previous year, the company earned $2.43 earnings per share. Charles River Laboratories International’s quarterly revenue was down 2.2% on a year-over-year basis.

Here are the key takeaways from Charles River Laboratories International’s conference call:

• Third-quarter revenue grew 4.7%, the strongest growth in three years, and adjusted EPS rose 27% to $3.09, both ahead of expectations. Charles River raised its 2026 organic revenue growth outlook to at least 1.5% and EPS guidance to $11.35–$11.55.
• Demand strengthened in DSA, with organic growth of 5.9%, bookings up 32% year over year, and book-to-bill of 1.09x for a fourth consecutive quarter above 1.0x. Management expects mid-single-digit DSA growth in Q4, while manufacturing returned to 7.4% organic growth.
• Operating margin expanded year over year, and the company expects further sequential improvement in Q4; its Create the Future program is projected to generate more than $300 million in cumulative savings over four years. Management expects 2027 margin improvement to exceed its previously discussed 75-basis-point annual average.
• RMS revenue declined 0.6% organically as weaker North American research-model demand and academic and government funding pressure offset growth in China. Management expects a modest reduction in RMS growth in Q4 and said this segment’s recovery may take time.
• DSA pricing remains a constraint: current growth is volume-driven, and reduced discounting has not yet benefited bookings or revenue. If trends hold, management does not expect pricing gains to affect revenue until at least the second half of 2027.

Charles River Laboratories International Stock Performance

Shares of NYSE CRL traded down $18.25 during trading on Wednesday, reaching $333.62. 1,113,801 shares of the company traded hands, compared to its average volume of 960,026. The firm has a 50 day simple moving average of $303.97 and a 200-day simple moving average of $223.61. The company has a quick ratio of 1.04, a current ratio of 1.35 and a debt-to-equity ratio of 0.92. The stock has a market capitalization of $15.93 billion, a PE ratio of -68.66, a P/E/G ratio of 3.16 and a beta of 1.36. Charles River Laboratories International has a 52-week low of $146.20 and a 52-week high of $379.63.

Analyst Ratings Changes

CRL has been the subject of a number of research reports. Morgan Stanley increased their price objective on Charles River Laboratories International from $300.00 to $340.00 and gave the stock an “overweight” rating in a report on Monday, October 12th. TD Cowen boosted their target price on shares of Charles River Laboratories International from $300.00 to $325.00 and gave the company a “buy” rating in a report on Friday, September 25th. Barclays upped their target price on shares of Charles River Laboratories International from $300.00 to $330.00 and gave the stock an “overweight” rating in a research report on Friday, September 25th. Robert W. Baird increased their price target on shares of Charles River Laboratories International from $291.00 to $334.00 and gave the stock an “outperform” rating in a research note on Friday, September 25th. Finally, Deutsche Bank Aktiengesellschaft boosted their price objective on shares of Charles River Laboratories International from $300.00 to $320.00 and gave the stock a “buy” rating in a research note on Friday, September 25th. One research analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating, three have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, Charles River Laboratories International currently has an average rating of “Moderate Buy” and an average target price of $302.33.

Insider Transactions at Charles River Laboratories International

In other news, Director Nancy C. Andrews sold 573 shares of the business’s stock in a transaction that occurred on Tuesday, August 18th. The shares were sold at an average price of $285.24, for a total transaction of $163,442.52. Following the completion of the transaction, the director directly owned 1,438 shares of the company’s stock, valued at $410,175.12. The trade was a 28.49% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, Director James C. Foster sold 24,042 shares of the stock in a transaction that occurred on Thursday, October 22nd. The shares were sold at an average price of $350.00, for a total transaction of $8,414,700.00. Following the transaction, the director owned 31,596 shares in the company, valued at approximately $11,058,600. This trade represents a 43.21% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders sold 113,123 shares of company stock valued at $33,864,118. Company insiders own 1.30% of the company’s stock.

Trending Headlines about Charles River Laboratories International

Here are the key news stories impacting Charles River Laboratories International this week:

• Positive Sentiment: Third-quarter adjusted earnings of $3.09 per share topped analysts’ roughly $2.97 estimate, while revenue of $982.7 million exceeded the $960.4 million consensus. Organic growth and margin expansion supported the results, and the company raised its 2026 outlook. Article: Charles River Q3 Earnings & Revenues Top Estimates, Stock Rises
• Negative Sentiment: Revenue was down 2.2% from a year earlier, tempering the positive earnings surprise. Zacks Research also downgraded CRL from “strong-buy” to “hold,” adding a cautious analyst signal. Article: Zacks Research stock recommendations
• Negative Sentiment: Despite the beat and raised outlook, reports noted that the stock declined, suggesting the strong results may not have met investor expectations or fully offset concerns about sales trends. Article: Charles River Labs drops despite its beat and raise

Charles River Laboratories International Company Profile

Charles River Laboratories International, Inc is a contract research and laboratory services company that supports pharmaceutical, biotechnology, medical device and academic research organizations. The company provides products and services used throughout the drug-development process, from early discovery and research through preclinical testing and manufacturing support.

Its offerings include research models, laboratory animal management, discovery and safety assessment services, toxicology testing, bioanalysis, and support for biologic, cell and gene therapy programs.